RBI issues guidelines on Regulation of Payment Aggregators and Payment Gateways

Mar 26, 2020 | by Avantis RegTech Legal Research Team

Industry Specific Compliance

The Reserve Bank of India (RBI) on March 17, 2020, issues guidelines on Regulation of Payment Aggregators and Payment Gateways. The Payment Aggregators (PAs) and Payment Gateways (PGs) are intermediaries playing an important function in facilitating payments in the online space. The PAs are entities that facilitate e-commerce sites and merchants to accept various payment instruments from the customers for completion of their payment obligations without the need for merchants to create a separate payment integration system. In the process, they receive payments from customers, pool and transfer them on to the merchants after a time period. And the PGs are entities that provide technology infrastructure to route and facilitate processing of an online payment transaction without any involvement in handling of funds.

These guidelines discuss about the followings:

1. The criteria of authorisation

2. Capital Requirements

3. Safeguards against Money Laundering (KYC / AML / CFT) Provisions

4. Board approved policy for merchant on-boarding

5. Settlement and Escrow Account Management

6. Customer Grievance Redressal and Dispute Management Framework

7. Security, Fraud Prevention and Risk Management Framework

These guidelines are not applicable to Cash on Delivery (CoD) e-commerce model.

[Notification No. DPSS.CO.PD.No.1810/02.14.008/2019-20]


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